The complaint pointed to a “series of suspicious transactions” ahead of Chevron’s announcement of its intention to buy out all of Anadarko’s stock for $65 per share, which was 38 percent above Anadarko’s announced closing price of $46.80 on April 11, the day the merger agreement was executed.

Following the announcement of the merger, Anadarko’s share price grew by 32 percent by the end of April 12.

Since February 2019, read the complaint, Anadarko had traded between $41.84 and $47.19, closing at $46.80 the day before the announcement.

Alleged traders involved in the potential scheme were accused of using foreign brokerage accounts in the United Kingdom and The Republic of Cyprus to purchase out-of-the-money call options through American brokerage firms and exchanges in the days leading up to the announcement of the merger, read an SEC news release.

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Each of the 50 U.S. states has a unique history, geography, demographic makeup, and political climate. These factors have considerable economic implications and lay the foundation of a state’s industrial composition. To highlight the unique economic features of each state, 24/7 Wall St. reviewed the largest industry in each state based on total GDP contribution. Thinkstock

Alaska:
Oil and gas extraction
Industry GDP contribution: $7.4 billion (15.9% of total)
Industry workforce: 3,777 (1.2% of total)
5 yr. Industry GDP change: -31.0%
Avg. industry salary: $207,853
Alaska is a resource-rich state, with more proved oil reserves than all but three other states and some of the largest oil fields in the country. Paxson Woelber / Wikimedia Commons

Iowa: Insurance carriers and related activitiesIndustry GDP contribution: $20.2 billion (12.4% of total)Industry workforce: 44,236 (2.9% of total)5 yr. Industry GDP change: +106.9%Avg. industry salary: $76,937Iowa is one of just two states in which insurance is the largest economic driver, and one of nine if real estate is excluded from consideration. MelindaRose / Getty Images

Kansas: FarmsIndustry GDP contribution: $4.8 billion (3.5% of total)Industry workforce: 10,978 (0.8% of total)5 yr. Industry GDP change: +12.3%Avg. industry salary: $38,857Along with Idaho, Kansas is one of only two states in which farming is the largest industry after real estate. ehrlif / Getty Images

Maryland: Broadcasting (except Internet) and telecommunicationsIndustry GDP contribution: $12.7 billion (3.8% of total)Industry workforce: 18,539 (0.7% of total)5 yr. Industry GDP change: -3.9% Avg. industry salary: $92,335Maryland is one of three states where broadcasting and telecommunications industry is the largest after real estate. The industry accounts for 3.8% of Maryland's total GDP -- slightly more than its 2.7% share of GDP on a national scale. SeanPavonePhoto / Getty Images

Missouri: Hospitals, nursing, and residential care facilitiesIndustry GDP contribution: $10.7 billion (4.1% of total)Industry workforce: 199,036 (7.2% of total)5 yr. Industry GDP change: +2.9%Avg. industry salary: $44,443Hospitals are a major economic engine in Missouri. The state is home to some of the largest hospitals in the country, including Barnes Jewish Hospital and Saint John's Mercy Medical Center in St. Louis, as well as Saint John's Hospital in Springfield. BCFDFF / Wikimedia Commons

Nebraska: Insurance carriers and related activitiesIndustry GDP contribution: $8.3 billion (8.0% of total)Industry workforce: 25,775 (2.7% of total)5 yr. Industry GDP change: +97.6% Avg. industry salary: $65,517Nebraska's insurance industry has more than doubled in size in the last five years and now ranks as the state's largest industry, after real estate. Public Domain / Wikimedia Commons

New Mexico: Oil and gas extractionIndustry GDP contribution: $7.1 billion (8.2% of total)Industry workforce: 4,711 (0.6% of total) 5 yr. Industry GDP change: +47.7%Avg. industry salary: $104,394New Mexico, home to two of the nation's largest oil fields, is the sixth largest oil producing state, churning out about 500,000 barrels a day -- more than double its 2009 production levels. amygdala_imagery / Getty Images

New York: Monetary authoritiesIndustry GDP contribution: $76.5 billion (6.0% of total)Industry workforce: 163,004 (1.8% of total)5 yr. Industry GDP change: -7.2%Avg. industry salary: $139,249New York state's banking sector -- much of which is concentrated in Manhattan -- generated $76.5 billion in 2016, more than the entire economies of over a dozen states, including Hawaii, Delaware, and North Dakota. New York, which is one of only three states with a GDP of over $1 trillion, has a relatively diverse economy. MBPROJEKT_Maciej_Bledowski / Getty Images

Pennsylvania: Broadcasting (except Internet) and telecommunicationsIndustry GDP contribution: $40.0 billion (6.1% of total)Industry workforce: 35,224 (0.6% of total)5 yr. Industry GDP change: +39.0% Avg. industry salary: $87,241Along with Georgia and Maryland, Pennsylvania is one of three states where broadcasting and telecom is the largest industry after real estate. Public Domain / Wikimedia Commons

Texas:Oil and gas extractionIndustry GDP contribution: $137.2 billion (9.3% of total)Industry workforce: 93,333 (0.8% of total)5 yr. Industry GDP change: +57.2%Avg. industry salary: $184,952Texas is home to over a third of all proved oil reserves in the United States and more than 25 of the country's 100 largest oil fields. The largest industry in the state, oil and gas extraction, generated $137.2 billion in 2016, more than the entire GDP of Montana, Vermont, and Wyoming combined. dszc / Getty Images

Utah: Monetary authoritiesIndustry GDP contribution: $5.8 billion (4.2% of total)Industry workforce: 35,942 (2.6% of total)5 yr. Industry GDP change: +1.4%Avg. industry salary: $63,586Utah is one of only a handful of states where companies are legally allowed to set up industrial banks. These banks exist to make loans to businesses with fewer restrictions than commercial banks, and such institutions can be owned and operated by non-financial companies. strickke / Getty Images

West Virginia
Mining (except oil and gas)
Industry GDP contribution: $4.6 billion (6.9% of total)
Industry workforce: 12,566 (1.8% of total)
5 yr. Industry GDP change: -43.4%
Avg. industry salary: $77,352
Coal mining has been an integral part of West Virginia's economy for over a century, with large-scale mining operations beginning in the mid 1800's. With coal deposits in 53 of the state's 55 counties, West Virginia ranks as the second largest coal producer in the country, trailing only Wyoming. JodiJacobson / Getty Images

Wisconsin: Insurance carriers and related activitiesIndustry GDP contribution: $18.1 billion (6.5% of total)Industry workforce: 63,219 (2.2% of total)5 yr. Industry GDP change: +60.5%Avg. industry salary: $71,077Wisconsin is one of nine states in which insurance is the largest industry, not counting real estate. The state is home to the corporate headquarters of some industry giants, including Northwestern Mutual Life Insurance, which is based in Milwaukee, and American Family Insurance Group in Madison. driftlessstudio / Getty Images

Wyoming: Mining (except oil and gas)Industry GDP contribution: $4.4 billion (12.7% of total)Industry workforce: 8,492 (3.1% of total)5 yr. Industry GDP change: -18.5%Avg. industry salary: $86,482Home to over a third of recoverable U.S. coal reserves, Wyoming has been the top coal producing state for over 30 years. Mining generated $4.4 billion in Wyoming in 2016. Kat72 / Getty Images

The brokerage account customers then profited by either selling off their shares or using the options to purchase more shares at a discount.

In total, the defendants were accused of purchasing the Anadarko calls through one or more accounts in the names of Cowen International Ltd., and Cowen International Ltd. for Sun Global (Cowen-SG) of the U.K. and Renaissance Securities Limited of Cyprus.

The purchases were “highly suspicious, timely and lucrative,” read the complaint as they were purchased while discussions of the merger were ongoing, set to expire in the near term, represented a large percentage of the option series and resulted in “windfall” profits.

Reports also did not indicate any other reportable trading of Anadarko options in the foreign accounts in the last year.

“In light of Defendants’ large, unprecedented purchases of Anadarko calls before the announcement, on information and belief, Defendants purchased the calls while in possession of material, nonpublic information concerning a propose acquisition of Anadarko.”

Suspects were charged with violating antifraud provisions of the Securities Exchange Act of 1934, and the SEC is seeking a final judgement to order traders payback any illegally gained profits with interest.

The complaint also calls for civil penalties, and to permanently enjoyed the alleged illegal traders from future violations, the release read.

How much did they make?

On Feb 8, two days before Chevron delivered its proposal to Anadarko and three days before the public announcement of the merger, an account holder at Cowen bought 250 calls at a strike price of $40, and expiration date of Feb. 15.

That marked a $48,875 investment at $2 per option, accounting for 55 percent of the call series for that day.

The options were exercised on Feb. 15, and the resulting profit — following the merger announcement — was $494,000, records show.

On March 22, an account holder at Cowen bought 500 out-of-the-money calls, at a strike price of $45, expiring on April 18, for a total of $58,000 or 57 percent of the call series traded that day.

Those options were sold on April 16, and the deal resulted in $824,500 in profits after the merger was publicized.

The Cowen-SG account purchased 250 options on March 25 at a strike price of $45 per share, expiring on April 18 — an average cost of 88 cents per contract for a total of $22,000 and 34.9 percent of the daily call series.

The Renaissance account purchased 650 calls on April 1 at a strike price of $50, expiring on May 17 — an average price of $1.07 per contract at a total cost of $69,550 and 38 percent of the day’s traded call series.

Those options were exercised on April 15 for a profit of $727,350.

The Plaintiff called on the court to order the assets gained from the alleged insider trading be immediately frozen.

The complaint also asked that illicit trading profits be paid back, and that a judge determine civil penalties to be assessed at trial.